The Importance of the Wolfpack: Predators Keep the Balance in the Supply Chain!
A dominant theme that my co-author (Tom Linton) and I emphasize in our forthcoming book, “The LIVING Supply Chain” in the need to establish balance in the supply chain ecosystem. These rules apply within the Serengeti Desert, and we adopt several of the “Serengeti Rules” that naturalist Sean Carroll talks about in his book of the same name, and apply these to our thoughts about the emergence of the federated, living digital supply chain. These two concepts have a common theme: the importance of balance in ecosystems.
For example, Carroll discusses the wolves that were eliminated from Yellowstone in 1926. This national park, with the largest concentration of mammals in the 48 states, saved the population of bison and grizzly bears from extinction. When the wolves were all killed off in 1926 (ranchers believed the wolves were decimating their sheep), the elk population erupted. Unfortunately, the larger herds of elk took a heavy toll on the system’s trees and plants.The elk pushed the limits of Yellowstone’s carrying capacity, and they didn’t move around much in the winter-browsing heavily on young willow, aspen and cottonwood plants. That was tough for the beaver, who need willows to survive in winter. The resulting shrinkage in the tree population – known as a “trophic cascade” –, also impacted the lives of beavers, which feed off willows, and the beaver population shrunk.
Naturalists pushed to have the wolves reintroduced into Yellowstone in 1974. By 1984, ten years after 31 wolves were reintroduced into Yellowstone, the population had grown to 301. In the years that followed, not only was the elk population reduced by half, but elks’ over-browsing of tree species, notably aspen, cottonwood and willow, was curtailed. The reintroduced wolves also reduced the number of coyotes, which feed on young pronghorn antelope. Studies show that fawn survival rates are four times higher in sites with wolves than without them. As the elk and antelope populations got back in balance, so did the beaver population. Today, with three times as many elk, willow stands are robust. Why? Because the predatory pressure from wolves keeps elk on the move, so they don’t have time to intensely browse the willow. A US Geological Survey showed that as the beavers spread and built new dams and ponds, the cascade effect continued. Beaver cuttings actually produce healthy stands of willow, and beaver dams have multiple effects on stream hydrology. They even out the seasonal pulses of runoff; store water for recharging the water table; and provide cold, shaded water for fish, while the now robust willow stands provide habitat for songbirds.
The rationale behind the idea of good, balanced environments is one that applies equally to the concept of the LIVING Supply Chain: Predators maintain balance in nature, and mankind needs to seriously consider letting the natural rules of evolution play out in the world of supply chain commerce as well. The “natural rule” of evolution emphasizes open and free trade and open forces of competition, which drive naturally occurring outcomes. When wolf or elk populations are out of balance, bad things start to happen to the natural ecosystem. By the same token, supply chains should compete fairly within the guidelines of being “good.” Unbalanced supply chains cause things to begin to go wrong.
The marketplace is the essence of creating balance in the supply network, as first advocated by Adam Smith in The Wealth of Nations. Balance is an organic concept, found in nature. In his book, Carroll documents how every living creature participates in and helps maintain balance in the ecosystem, which helps the system to flourish. If human beings kill too many wolves, the elk population explodes. If there are too many elks, the aspens and willows will start disappearing, and the coyote population will explode. According to The Serengeti Rules, a system is either in balance or out of balance; the same is true for a supply chain system.
This is an important concept to remember, as we face a new world order that is increasingly being localized, and closing borders. The general population is unaware of the many of the benefits of open trade that have accrued due to the benefits of globalization, seeing only the jobs that have gone away. In this new digital, fast-moving economy, however, we need to think about the importance of open competition to keep the balance in the supply chain ecosystem, which can spur innovation and continuous improvement. We will all be better off in the long run, by keeping our supply chains open and balanced. This is a concept that our faculty and students are consistently working on promoting at the Poole College of Management. The NC State Wolfpack is dedicated to keeping the global supply chain strong and balanced!
